Depositing, Earning and Borrowing
Browse to the "Deposit" section and click on "Deposit" for the asset you want to deposit. Select the amount you'd like to deposit and submit your transaction*. Once the transaction is confirmed, your deposit is successfully registered, and you begin earning interest.
*The first deposit of one asset will require an additional approval transaction.
astToken holders receive continuous earnings that evolve with market conditions based on: Loan’s interest rate payment; depositors share the interests paid by borrowers corresponding to the average borrow rate times the utilization rate. The higher the utilization of a reserve the higher the yield for depositors. Check the Borrow Interest Rate section for a more detailed description. Flash Loan fees: depositors receive a share of the Flash Loan fees corresponding to .09% of the Flash Loan volume. Each asset has its own market of supply and demand with its own APY (Annual Percentage Yield) which evolves with time. Users can check the average annual rate over the past 30 days to evaluate the rate evolution, there’s also more data on each token’s page in the app.
No, you can deposit any amount you want, there is no limit. Still, it's important to take into account that for really low amounts the transaction cost of the process might end up higher than the expected earnings, even though the numbers are significantly smaller. Please consider this fact when depositing very low amounts.
No, you can only borrow using a variable rate. Even though we have stable rate borrowing, we haven't activated it yet.
Simply head to the "Home" section and click on “Withdraw”. Select the amount you wish to withdraw and submit the transaction. Also, you can use your “astTokens" as liquidity without withdrawing. In order to withdraw you would need to make sure there is enough liquidity (not borrowed), if this is not the case you would need to wait for more liquidity from depositors or borrowers repaying.
Yes. After depositing your assets, you are able to deselect the asset so that it will not be used as collateral. The opt-out is available in the "Deposit" section inside your dashboard. Simply switch the "use as collateral" button on the asset you would prefer to opt out from being used as collateral.
*You can withdraw assets without opting out of using them as collateral, as long as those funds are not actively being used to borrow and the withdrawal would cause a liquidation on your loans.
Selling your assets means closing your position on that particular asset. Hence, if you are long on the asset, you’ll lose the potential upside value gain. By borrowing you can obtain liquidity (working capital) without selling your assets. Users are mainly borrowing for unexpected expenses, leveraging their holdings or for new investment opportunities and still holding to their valuable assets.
To be able to borrow, first, you need to deposit any asset to be used as collateral. Then, simply head to the Borrow section and click on “Borrow” for the asset you want to borrow. Set the amount you need based on your available deposits that would be used as collateral for the loan. Select the variable rate and confirm the transaction.
Logically, the maximum amount you can borrow depends on your deposition and the available liquidity. For example, you can’t borrow an asset if there is not enough liquidity or if your ‘health factor’ doesn’t allow you to. The entire list of available collateral and their specific parameter could be found in the Risks & Parameters section.
You repay your loan with the same asset you borrowed. For example, if you borrow 1 ETH you will pay back 1 ETH + interest accrued. At the moment, you can’t use your collateral to repay but it’s on the roadmap. If you want to pay back the loan based on USD price you can borrow any of the available stable coins as USDC, DAI or USDT (remember their price may slightly differ due to market price)
The interest rate depends on the ‘borrowing rate’ which is derived from the supply and demand ratio of the asset. Moreover, the interest rate of a variable rate changes constantly. You can find your current borrowing rate at any time in the Borrowings section of your dashboard.
The ‘health factor’ is the numeric representation of the safety of your deposited assets against the borrowed assets and their underlying value. The higher the value, the safer the state of your funds against a liquidation scenario. If the health factor reaches 1, the liquidation of your deposits will be triggered. A Health Factor below 1 can get liquidated. For a HF=2, the collateral value vs borrow can reduce by 1 out of 2: 50%. The health factor depends on the liquidation threshold of your collateral against the value of your borrowed funds.
With the value fluctuation of your deposits, the health factor will increase or decrease. If your health factor increases, it will improve the borrow position by making the liquidation threshold more unlikely to be reached. In the case that the value of your collateralized assets against the borrowed assets decreases instead, the health factor is also reduced, causing the risk of liquidation to increase.
There is no fixed period to pay back the loan. As long as your position is safe, you can borrow for an undefined period. However, as time passes, the accrued interest will grow which makes your health factor decrease, probably resulting in your deposited assets becoming more likely to be liquidated.
To pay back the loan you simply go to the Borrowings function in your Dashboard and click on the repay button for the asset you borrowed and want to repay. Pick the amount you want to pay back and confirm the transaction.
To avoid liquidation, you must control your ‘health factor’ and to control that, you can repay the loan or deposit more assets in order to increase it. Out of these two available options, repaying the loan would increase your health factor more.
An upcoming feature on Australis is the ability to swap your deposited assets, even the ones being used as collateral, to another asset. Meaning you have the ability to repay your debt/loans with your deposited collateral.